To The Moon

Tired of volatile small-cap pharma? Novartis proves why big pharma stability beats risky bets! With $54.5B in 2025 sales, a booming pipeline (hello Fabhalta!), and 28+ years of dividend hikes—would you pick NVS over shaky plays like Amarin (AMRN)?

Do you prioritize "security" or chase small-cap growth in pharma? Share your take below!

Over the past few months, volatility in the broader stock market has intensified significantly. Amid this environment of pervasive uncertainty, an age-old yet effective investment principle has become increasingly valuable: prioritize allocating capital to mature enterprises with solid foundations and consistent profitability. While small-cap stocks theoretically offer higher growth potential than large companies, the accompanying risks often make that potential not worth the gamble.

Against this backdrop, let’s examine a small pharmaceutical company that has performed moderately well over the past twelve months but is not worthy of your investment— $Amarin Corp PLC(AMRN)$ . Instead of betting your hard-earned money on such a company, consider industry leaders like $Novartis AG(NVS)$ .

Amarin’s Outlook: Hidden Crises Behind the Glossy Surface

Over the past year, Amarin’s stock price has risen by approximately 22%. However, the future of this stock is fraught with immense uncertainty. Amarin does have an approved product, Vascepa, used to reduce the risk of various cardiovascular events. But the problem is that generic versions of this drug have been on the market for years. The direct consequence is that its sales are heading in the wrong direction. In fiscal 2025, the company’s total revenue fell 6.5% year-on-year to $213.6 million.

Of course, Amarin is not sitting idle. After losing the patent for its core product, it has formulated a series of self-rescue plans and achieved some progress. For example, by cutting costs through layoffs and other measures, its net loss per share narrowed sharply from $0.20 in 2024 to $0.09 in 2025—no small feat amid declining sales. Additionally, Amarin is engaged in a legal lawsuit with generic drugmaker Hikma Pharmaceuticals, accusing it of infringing on the still-patented uses of Vascepa, and the case has now been appealed to the U.S. Supreme Court. A victory could potentially send the company’s stock price soaring.

Meanwhile, Amarin has adjusted the commercialization strategy for its only approved product. For instance, it entered a partnership with Italian company Recordati, licensing the latter to sell Vascepa in 59 markets (primarily in Europe), including China. This deal brought Amarin a $25 million upfront payment, with eligibility for up to an additional $150 million in milestone payments, while transferring commercialization expenses and generic drug risks to the partner.

However, while these efforts are commendable, the fundamental risks facing Amarin remain unresolved. With no pipeline of drugs in development and revenue entirely dependent on a product that has lost patent protection—its prospects appear extremely bleak. The best strategy for this biotech stock is still to stay away.

A Completely Different Investment Logic: Where Novartis’ "Security" Comes From

There is a world of difference between Amarin’s business and Novartis’. The latter boasts a vast product portfolio spanning multiple therapeutic areas, capable of generating consistent and stable revenue and profits. In 2025, Novartis recorded $54.5 billion in sales, an 8% year-on-year increase; earnings per share rose 15% to $8.98. Even if core products lose patent protection, Novartis’ extensive product line means it has a strong buffer capacity, able to recover even after a year or two of declining sales. A typical example is Entresto, the company’s blockbuster drug for treating chronic heart failure, which just lost its patent last year—but Novartis expects sales to still achieve slight growth in 2026.

Another core difference between the two companies lies in their R&D pipelines. As a pharmaceutical giant, Novartis is conducting dozens of clinical trials simultaneously, at least some of which will translate into new drug approvals or expanded indications for existing drugs. Several newer products have already had a substantial impact on financial performance, explaining why the loss of Entresto’s patent is not a fatal blow. For example, Fabhalta, first approved in December 2023 for the treatment of two rare diseases, generated $505 million in revenue in 2025, a 291% year-on-year increase.

Novartis may not make headlines as frequently as companies dominating the popular weight-loss market, but it has a solid core business, and its stock price has risen by approximately 59% over the past 12 months, demonstrating its long-term growth potential. For investors seeking stable cash returns, Novartis is an exceptional high-quality dividend stock—it has increased its dividend every year since 1996.

Taking all these factors into account, Novartis is undoubtedly a far more worthy buy than Amarin. Amid heightened market volatility, instead of seeking opportunities in uncertain small-cap stocks, it is better to choose a deep-rooted, pipeline-rich industry giant like Novartis. The "security" it provides is incomparable to any thin narrative.

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